It's That Time Again! Tax Season 2025: New Jersey Edition

Tax season...For some, it's scarier than Halloween. It brings to mind people surrounded by shoe boxes, manila envelopes, and plastic file folders stuffed with receipts, W-2s, 1099s, post-it-notes, and ANYTHING else that might possibly get them even a smidgen more of a refund and/or tax deduction.

I actually recommend that people do their own tax preparation at least once in their lives because it is an eye-opening experience. My tax returns are complicated as I tend to work multiple jobs plus engage in various business endeavors. Those experiences have caused me to think like an accountant. I look for as many opportunities and label as many receipts as possible to claim tax deductions.

I recall telling a friend, who has been filing taxes on the side for years, that he could not do my taxes. His ego told him "yes" but my experience told me "no way." Well, he ended up surrendering my tax documents because he couldn't figure out the tax prep that I needed. So, don't sell yourself short; use either a cloud based application or computer software to prepare your taxes. It saved me several hundred dollars and... Yes, I received a refund. However, seeking out the advice and services of a tax professional on a regular basis is a solid course of action.

While I'd much rather concentrate on the wonderfulness of the month of April being National Financial Literacy Month, I must acknowledge the inevitable truth:  April 15th is the deadline to file your 2024 income taxes. While this article will present general tax related information, it will have a concentration on the State of New Jersey.

Let's do a quick Q & A:

Q:  What if I cannot file my taxes by April 15th?

A:   File IRS Form 4868 - Application for Automatic Extension of Time to File U.S. Individual Income Tax Return 
https://www.irs.gov/forms-pubs/about-form-4868

Q:  I did some gig work but the company never sent me a tax form. How can I file to represent this income?

A:  If the income you earned was less than six hundred dollars ($600.00) companies will not send you Form 1099-MISC. However, you are still responsible for claiming this income. View your pay statements.

Q:  I'm a rideshare driver. Can I claim both gasoline and mileage?

A:  No. You must decide which is better to claim on your tax return, the Standard Mileage deduction or Actual Expenses (Ex: gasoline, repairs/maintenance, insurance, depreciation, license fees, tires, car washes, lease payments, towing charges, auto club dues/roadside assistance, etc. ) The IRS optional standard mileage rate is now 70 cents per mile. This is a three cent increase from 2024.

I highly recommend using the MileIQ automatic mileage tracker app. You can classify your drives with a swipe. It also provides you with a tax-compliant report that you can separate into business or personal drives.     www.mileiq.com

Note: Claim the Operating Expense deduction, by recording those expenses on a Schedule C in the Common Operating Expenses section. (Ex: Uber and Lyft fees and commissions, snacks & beverages for passengers, electronic toll transponder, mileage tracking software/app, dog seat covers/waterproof seat covers, mobile telephone accessories, etc. )

New Jersey Tax Information

Beginning with this season, qualified New Jersey residents may file their taxes online directly with the government for free. For more information, see the State of New Jersey - Department of the Treasury - Division of Taxation: https://www.nj.gov/treasury/taxation/

Tax Breaks for NJ Senior Citizens and/or Retirees

• Bill A705 - New Jersey Legislature - "Senior Citizens Property Tax Deferral Act"; allows certain seniors to defer property tax payments. This bill allows New Jersey seniors, 65 years of age and older, whose annual household income, for federal tax purposes, is under $50,000 to also qualify for an annual deferral of property tax payments.
• Retirement Income Exclusions:  These reduce your taxable income. (Ex: Pension) https://www.nj.gov/treasury/taxation/njit7.shtml
• Senior Freeze: Reimburses eligible senior citizens and disabled persons for property tax or mobile home park site fee increases on their principal residence (main home).
• STAY NJ - Property Tax relief program that offers property tax benefits to eligible homeowners aged 65 and older. It reimburses applicants for 50% of their property tax bills, up to a maximum of $13,000, with a 2024 benefit cap of $6,500. Source:  State of New Jersey - Department of the Treasury - Division of Taxation
  

Various NJ Tax Relief Programs

• ANCHOR - Affordable New Jersey Communities for Homeowners and Renters  
• Tax$ave - eligible employees get the opportunity to increase their available income by reducing their federal tax liability

http://www.state.nj.us/treasury/taxation/relief.shtml

Military Personnel & Veterans
You must report your military pay, including combat pay (2020 and prior), and cost-of-living allowance, as wages on Form NJ-1040. With regard to residency, wherever you lived when you were deployed or stationed remains your state of resistance.

"New Jersey follows the federal Servicemembers Civil Relief Act, 50 U.S.C. - 3901 et seq. A service member who was a resident of a particular state when entering the service remains a resident of that state, regardless of where the individual is stationed (50 U.S.C. - 4001)." Source:  State of New Jersey - Department of the Treasury - Division of Taxation

Did You Know?

• New Jersey has the highest property tax rates in the nation
• New Jersey ranks in the top ten for highest overall tax burden
• The following items are tax exempt in New Jersey:
  • clothing, footwear, most non-prepared food items, food stamps/SNAP eligible items, and medical supplies.
• New Jersey's sales and use tax rate is 6.625%
• New Jersey pays the most taxes to the federal government while receiving the least federal dollars in return, making it the least federally dependent state.

Filing income taxes is one of those 'necessary evils.' However, advance preparation, organization items, online tools and apps for record-keeping, and keeping abreast of the latest tax incentives will help ease the burden and provide much needed tax relief.

Get a free Financial Needs Analysis:  

Call (484) 416-0442  Use code AC Focus

(Paula Goddard is a contributing writer for Atlantic City Focus. She is an award-winning writer, personal finance advisor, community organizer, and educator. She can be reached via social media @paulasuniverse and via email at pgMoneyMinute@gmail.com or via phone at (202) 681-8767.)

Thanks for reading the whole story!

At Atlantic City Focus, we're committed to providing a platform where the diverse voices of our community can be heard, respected, and celebrated. As an independent online news platform, we rely on a unique mix of affordable advertising and the support of readers like you to continue delivering quality, community journalism that matters. Please support the businesses and organizations that support us by clicking on their ads. And by making a tax deductible donation today, you become a catalyst for change helping to amplify the authentic voices that might otherwise go unheard. And every contribution is greatly appreciated. Join us in making a difference—one uplifting story at a time!

*** GET UP WITH ATLANTIC CITY FOCUS and RAYMOND TYLER
STARTING MONAY, FEB 10th AT 8AM! ***